Why Cambodia: 8 reasons investors are looking at this market

Cambodia is rarely the first country on a real estate investment shortlist — and that's exactly why entry points still exist here that are already gone in Dubai or Bali. Below is a breakdown, without the marketing fog, of what really sets this market apart: why prices are in dollars, how a foreigner owns an apartment directly, where interest-free installments come in, and where the line runs between fact and forecast. The decision is yours — we provide the inputs.

1. A dollar economy

The key feature of Cambodia for an investor is its de facto dollarisation. Real estate prices, rent and large transactions are denominated in US dollars, not the local riel. That means the value of your asset and your rental income aren't eroded by the local currency's exchange rate — you enter in dollars and stay in dollars. For anyone diversifying capital outside the rouble zone, this is one of the key arguments.

2. Direct foreign ownership

Unlike a number of neighbouring countries, Cambodia allows a foreigner to own real estate directly — through strata-title, without nominee structures or local partners. There are two limits, and they're straightforward: you can own an apartment above the ground floor, and the total foreign quota in a building is capped at 70% of the floor area. A foreigner doesn't own land directly, but for buying an apartment in a condominium that's no obstacle. You receive the title in your own name.

3. A low entry threshold

Entry into the residential market starts from around $40,000 — a real price for an apartment in an under-construction complex with a developer discount. By comparison, a comparable entry in Thailand is around $80,000 and in Dubai from $200,000. A low threshold means Cambodia isn't only for large capital: people come in here with a single apartment as their first foreign asset.

4. 0% developer installments

Interest-free installments are what make the low entry even more accessible. Phnom Penh developers offer installments over 25–45 months at 0%: you pay part on signing the contract and the rest in equal payments during construction, with no bank overpayment. This lets you enter an asset without having the full sum in hand. How the payments are structured across our projects is on a dedicated page about installments in Cambodia.

5. A growing Phnom Penh

Cambodia's capital is the main engine of the market. The country's economy grows by roughly 6% a year (per World Bank data for 2024), and that growth is concentrated in Phnom Penh: new business districts, infrastructure, an inflow of expats and companies. For an investor this means demand for quality housing and offices. Where exactly to buy depends on the district — our breakdown by location is in the guide to Phnom Penh districts.

6. Rent and rental demand

The market benchmark for rental yield in Phnom Penh is around 6–10% per year in dollars. To be clear: this is a market benchmark, not a guarantee. Actual yield depends on the project, location, management quality and occupancy. Rental demand is driven by expats, staff of international companies and a growing local middle class. Recognisable projects in good districts let more easily — which is why concept and location matter more for a rental strategy than they might seem.

7. Infrastructure and the tax regime

The tax burden on an owner in Cambodia is moderate: the annual property tax is 0.1% of value, and the stamp duty on registration is around 4%. Capital gains tax (CGT) is 20%, but its introduction is deferred to 1 January 2027 — a confirmed fact worth factoring into the timing of a deal. All figures are given as reference benchmarks; exact calculations for a specific property come at the transaction stage.

8. A local team on the ground

Buying abroad works only as far as you have someone to rely on in the country. NovAsia runs the deal together with partners in Phnom Penh: they verify the property with the developer, monitor construction progress, send photos and video, and accompany you until you receive the keys. All enquiries go through us first — you deal with one team, not a dozen scattered agents. How the process works is in the how buying works section.

Where it doesn't work: honest caveats

Cambodia is not a magic pill. It's a developing market: the investment horizon here is long, liquidity is lower than in mature markets, and guaranteed income and buy-back are terms of the contract with the developer — not a guarantee from NovAsia or the state. Forecasts of value growth remain forecasts. We believe an honest conversation about risks matters more than a pretty picture — so we talk them through before the deal, not after.

Frequently asked questions

Can a foreigner own real estate in Cambodia?

Yes. A foreigner can directly own an apartment above the ground floor under strata-title, within the building's foreign quota (up to 70% of the floor area). A foreigner doesn't own land directly, but for an apartment in a condominium that's no obstacle.

Why are prices in Cambodia in dollars?

Cambodia's economy is effectively dollarised: real estate deals, rent and prices are denominated in US dollars. For an investor this means the value of the asset and the rental income don't depend on the local currency's exchange rate.

What budget can you enter with?

Entry into the residential market starts from around $40,000 for an apartment in an under-construction complex with a discount and interest-free installments. Premium and commercial projects start from $100,000 and up.

What rental yield is there in Phnom Penh?

The benchmark is around 6–10% per year in dollars. This is a market benchmark, not a guarantee: actual yield depends on the project, location, management and occupancy.